PUBLIC TRANSPORT OPERATORS DEMAND 50% BUS FARE HIKE

MANZINI – Passengers across the country could soon face significantly higher travel costs as public transport operators signal their intention to demand a steep 50 per cent bus fare increase.

While the exact figures are yet to be negotiated, a 50 per cent increase represents a substantial jump in daily expenses for workers, students and families who rely on public transport. For many, such an increase would force them to dig significantly deeper into their pockets for essential travel, potentially impacting household budgets. This potential hike comes as operators react to proposed government increases of up to 300 per cent on essential industry fees – costs, which passengers will likely end up bearing. The latest developments were revealed by the National Road Transport Council (NRTC) Chairman, Sabelo Dlamini, during its meeting with representatives of public transport associations. The meeting was held at the Matsapha Weighbridge yesterday, and its aim was to brief operators about developments pertaining to the industry.

Proposal

During the meeting, Dlamini, the NRTC Chairman, informed the public transport operators that while they were preparing to finalise their bus fare hike proposal, they discovered that government, through the Ministry of Finance, wants to increase user fees by up to 300 per cent. The user fees are an addition to fuel tax which accounts for E5.52 per litre, stemming from several levies, including a 42 cents per litre remittance to the Sincephetelo Motor Vehicle Accidents, Fund (SMVAF), a 40 cents per litre Road Agency Fund levy, a 35 cents per litre Eswatini National Oil Company (ENPC) levy, a 50 cents per litre fuel oil levy and a fuel tax of E3.85.

User fees in the public transport industry include money paid for permits, licence discs, test forms, passenger lists and consignment notes, among others.

Crucially for the average commuter, these potential increases in operational costs for transport operators – from permits to penalties – are highly likely to be passed directly on to passengers. The operators have made it clear that the proposed government user fee hikes will be factored into their final bus fare increase demand, meaning passengers will ultimately foot the bill for both the operators’ desired profit margins and government’s increased charges.

This proposed steep fare hike comes against the backdrop of consumers already starting to fork out eight per cent more for their electricity tariffs, four per cent more for water tariffs, and an impending 0.5 per cent increase in value-added tax (VAT), following South Africa’s move.

Meanwhile, during the meeting, Dlamini said a task team, which is headed by NRTC Treasurer Muzi Masuku and comprises an economist and lawyers, has been set up to look into the issue of the bus fare hike.

He said they were given orders to calculate all costs of operating the businesses, including the fuel price increase and levies, together with the hike in spare parts costs, since the last bus fare hike, which was about three years ago.

Dlamini explained that the task team is almost done with its proposal, but will have to wait for the proposed user fees process to be completed so that they can incorporate it as part of their operational costs.

“Once the user fees pass, we will give the task team a week to incorporate them into the bus fare hike proposal,” he said. The chairman also highlighted that this year’s proposal will be accompanied by a letter that will inform government that, as public transport operators, they want the bus fare hike process to be removed from Parliament and instead be negotiated at a round table by the relevant stakeholders.

He said by doing so, they could conclude the talks within a day or two, as opposed to the parliamentary route, which takes months or even a year before it can be passed.

He said the task team will be tasked with also looking at possible legal routes which they can take to achieve their wish.

Regarding the proposed increase in user fees, the chairman said they learned about it when the Ministry of Finance advertised the proposal in preparation for tabling it in Parliament.

Transportation

He said some of the key increases include: a domestic road transportation permit, which currently costs E100 and government wants to increase it by 200 per cent to E300. He said the same applies to fresh application forms, which they currently get for E100, and government wants to increase the fee by 250 per cent to E250.

“A cross-border road transportation permit also costs E100, but government wants to increase it by 200 per cent to E300,” he added.

He added that the penalty for late renewal of a road transportation permit, currently E0.00, is set to increase by 300 per cent to E300 per month. He said road transportation permits are supposed to be renewed at least three months before they expire, which means that operators might pay up to E900 in penalties, plus E300 for the permit, if they miss the three months. Furthermore, he said the consignment note for freight (trucks) was free, but now the government wants to charge E300 for it, which is another 300 per cent increase.

Thereafter, NRTC Treasurer Masuku, who also heads the organisation’s task team for the bus fare hike, explained that they made objections to some of the proposed increases in user fees. He said they have also met with Ministry of Finance Parliamentary Portfolio Committee members regarding their concerns.

He said they asked for the formula which government used to reach the decision that it should increase the user fees by such large amounts. However, he said they found that there is no pattern. He added that as they were objecting to some of the proposed increases, they made a request that, going forward, the review of user fees should have a pattern and that they should be engaged as stakeholders in order to discuss the items that influence the user fee review.

“A majority of our objections are on fees which we have to pay almost daily, like border fees for cross-border public transport,” he said.

He also said they objected to the proposed increase in road transportation permits by 200 per cent from E100 to E300. He said they made a counter-proposal of a 50 per cent increase from E100 to E150.

However, some public transport operators felt that even the 50 per cent increase is high. They argued that such an increase should be aligned with the inflation rate.

Masuku added that one of the factors why they are objecting to the proposed increase is that government should be seen as an enabler for businesses, rather than a barrier. He also pointed out that at some point in time, when they were submitting their arguments; they were allegedly told that, in fact, the national budget, which was outlined by the Minister for Finance, Neal Rijkenberg, in February 2025, was also based on the proposed user fee increases.

Aware

On another note, the chairman said later, when they approached the Ministry of Public Works and Transport Portfolio Committee, they learnt that the legislators were not aware of the proposal. In that regard, he said the portfolio committee has asked to meet them today. Operators expressed frustration, feeling ignored by government. They pointed to the recent E0.40 fuel levy implementation as an example of costs being added without consultation.

These costs invariably contribute to the pressure to raise fares for passengers. Their argument highlights a potential double burden on commuters: Facing higher fares due to general operating costs and fuel levies, compounded by potentially massive hikes stemming from the proposed user fee increases.

“What kind of government can seek to increase user fees in the public transport industry by up to 300 per cent and remain quiet about the bus fare hike? If we can propose to increase bus fares by 50 per cent, government can strongly oppose it,” they added.

Moreover, the chairman highlighted that they are yet to meet the Ministry of Public Works and Transport Portfolio Committee about the matter. He added that the proposed increases are still to be tabled and debated in Parliament.

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